South Korean cryptocurrency exchanges are encountering difficulties in expanding beyond their domestic market due to regulatory uncertainties and banking restrictions.

The five major exchanges – Upbit, Bithumb, Coinone, Korbit, and Gopax – continue to operate primarily within South Korea, despite possessing technical expertise and substantial market liquidity.

Upbit, operated by Dunamu, has subsidiaries in Singapore, Indonesia, and Thailand but does not hold equity stakes in these entities. Instead, it maintains licensing and technical support agreements.

Bithumb attempted expansion into the UK, Thailand, and Japan but withdrew in 2018, refocusing on domestic operations.

Coinone exited the Indonesian market in 2020, while Korbit and Gopax have not made any direct moves overseas.

Industry insiders identify regulatory ambiguity as a primary barrier to international expansion. South Korean authorities have yet to establish clear guidelines for domestic crypto firms looking to operate abroad.

Additionally, local banks reportedly block international remittance requests from crypto firms due to concerns over money laundering and unclear regulations.